Tipton Column: Preserve steel tariffs; protect Pueblo jobs

There are few places in our state that can better tell the rich history of Colorado than the Pueblo steel mill. For more than 150 years, the Pueblo steel mill has stood the test of time, lasting through severe economic downturns, local labor strikes, and marketdriven changes in demand that nearly pushed the mill to extinction.

Through all these challenges however, the steel mill continues to operate and supply the nation with the steel products on which our infrastructure, manufacturing and construction relies. While the Pueblo mill and other steel-industry jobs in the country are now a fraction of what they were in the heyday of the early 20th century, these good-paying jobs continue to be a major contributor to our state’s economy.

In fact, the American Iron and Steel Institute’s economic impact study shows that the roughly 1,590 steel industry jobs in the Third District alone contribute direct economic output of over $1.16 billion annually. As we recover from the COVID-19 pandemic and get our communities back to work, we must do everything possible to safeguard Colorado steel jobs, or we risk losing them permanently. 

Economic conditions as a result of COVID-19 have created a stressful situation for the steel industry, as many industries that use steel have been impacted as well, decreasing overall demand. Unfortunately, the pandemic is not the only threat to Colorado and U.S. steel jobs. China, which overwhelmingly leads the rest of the world in sheer steel production and global exports, “dumps” its oversupply into the global market, which undermines U.S. steel producers’ ability to remain competitive.

This practice is sustainable in China because the government subsidizes its steel producers to make up for lost profits. Steel dumping is illegal, and I have been strong in my calls for investigations into China’s dumping practices and to hold the government accountable of continued wrongdoings.

A recent investigation by the U.S. Department of Commerce, found that Chinese government- backed companies are flooding the market with steel, setting prices as low as 122 percent below market value, while receiving subsidies from China’s Communist Party (CCP) at rates as high as 192 percent. This particular investigation, however, was only a review of collated staple exports from China and does not provide a thorough picture of how severely the entire China-led steel-dumping practice actually impacts U.S. steel producers.

Fortunately, there have already been steps taken to help remediate this deceptive practice. In 2018, under the authority of Section 232 of the Trade Expansion Act, the Trump Administration imposed a 25 percent tariff on certain steel products imported from China. I recently sent a letter to Speaker of the House Nancy Pelosi and Republican Leader Kevin McCarthy asking them to uphold these tariffs, so we can continue to pressure the CCP to end its reckless behavior. Doing so — along with supporting my other efforts to hold the CCP accountable for its COVID19 response and reduce U.S. reliance on China for critical supplies and materials — will provide a much-needed boost to American manufacturers, energy and medical supply producers, and protect our national security interests.

I am committed to holding the CCP accountable for its steel dumping practices in order to protect steel jobs in Pueblo and across the country. The sight of the steel mill in the Pueblo skyline is a strong reminder of the many years of sweat that went into building this country, and the resolve Coloradans have today. It remains a great priority for me to see that Pueblo leads the way toward restoring U.S. dominance in manufacturing.